Securities

Gifts of appreciated stocks, bonds and mutual funds

Giving in sensible and effective ways may help minimize your tax-burden and stretch your charitable dollars.

A gift of appreciated securities provides meaningful support for Shepherd of the Hills and may offer you benefits of reduced tax liability. When you make a gift of appreciated securities, which you have held for more than 12 months, you may avoid the long-term capital gains tax and may deduct the full fair market value of the securities you give.

Gifts of appreciated securities include stocks, bonds, or mutual fund units. The following are some ways that securities held long-term (more than 12 months) can offer potential tax savings:

• Eliminating the capital gains tax on the appreciation that would have been due had you sold the securities on the open market and then donated the proceeds.
• Claiming a charitable deduction against up to 30% of your adjusted gross income. Deduction amounts exceeding this limit may be carried forward over the next four years.

To achieve these benefits, your securities must be transferred to Shepherd of the Hills, not sold, redeemed or exchanged. If they are sold from your account, the gift becomes a cash gift rather than a gift of securities, and you will personally realize any capital gains.

If you are considering a gift of securities that have decreased in value since purchase, it may be more advantageous for you to sell them and then claim the loss on your tax return, and then contribute the cash proceeds for a charitable deduction.